Business Roundup 

Government keen on tracking down fly-by-night companies

What is India News Service, June 21, 2004, 1630 hrs

The government machinery is on high alert to track companies that have vanished with huge sums of investor money. Software giant Infosys is pursuing aggressive plans to compete with global counterparts such as EDS, Accenture and IBM Global Services. German major Henkel KGaA is planning to make significant investments in India in the next few years. LG Care has decided to compete with Hindustan Lever Ltd and Procter & Gamble by slashing prices of its detergent brand.

Company affairs minister Prem Chand said the centre would seek the support of all states to track fly-by-night firms. Such firms have vanished with Rs 10,000 crore of investor wealth during the last ten years. Records say 229 firms are on the defraud list.

Infosys has decided to compete with global giants EDS, Accenture and IBM Global Services for the $12 billion Australian IT services market. Infosys Technologies Australia currently is a 550-member firm contributing to 10 per cent of the group\92s revenues. Infosys Australia aims to be the No 1 choice for global sourcing and delivery in Australia.

Henkel KGaA plans to invest heavily in India in the next few years. Its long term growth plans place India at No 3 after China and the US. The 12 billion European company is known in India for its laundry and cosmetic brands Henko, Pril and Fa. The company will focus on industrial businesses, in areas such as adhesives, bondings, sealants, coatings and metal surface treatment.

Just as the FMCG industry seemed to settle down after a price war, new entrant LG Care plans to take on HLL and Procter & Gamble. The company will slash prices of Super Enz, its premium detergent, to Rs 60 a kg. The detergent price will remain Rs 159 a kg, but Henko is throwing in a LG Double Rich shampoo worth Rs 99, thereby reducing the effective price to Rs 60 per kg. Through this exercise the company hopes to reach a turnover of Rs 150 crore.

Overall:

Centre will chase fraud companies: The company affairs minister has sought support from the states to track fly-by-night firms who have vanished with Rs 10,000 crore of investor wealth.

Infosys to play in Australia: The software major will compete with EDS, Accenture and IBM Global Services for the $12 billion Australian IT services market.

LG Care to slash price: Super Enz, its premium detergent, will effectively cost just Rs 60 a kg.

Henkel thinks big: The German major ranks India No 3 on its expansion and investment plans